Danielle Hughes, Associate at Sustainability for Housing (SfH), participated in Social’s recent panel discussion on “ESG: State of the Nation”. The webinar – part of Social’s “Impact Chat” series – was chaired by Luke Cross, Director and ESG Lead at Social, and joined by fellow panellists Janani Paramsothy, Associate Director at Newbridge Advisors, and Chris Evans, Director at Newbridge Advisors.
Amidst a constant stream of political noise and economic uncertainty, the discussion sought to explore the current state of sustainability within the UK social housing sector, as well as delve into the political and regulatory forces driving today’s ESG landscape.
The conversation began with a reflection on the changing sentiment around ESG. As Danielle put it, “ESG may be tarnished, but it is not dead”. She shared her observation of a shift toward pragmatism, cost savings and risk management in recent years and a move away from the moral and emotional appeals that defined ESG sentiment in the early 2020s. This is no bad thing, she emphasised, with organisations likely to reap more long-term benefits when sustainability programmes are integrated with finance and risk management strategies.
The discussion then steered toward UK and global politics, with Janani and Danielle discussing the anti-ESG sentiment coming from the Trump administration and the UK’s Reform party. While net zero has undoubtedly become a politically contentious topic (as evidenced by a lack of participation by certain key countries at COP30), Janani underscored the importance of climate mitigation and adaptation – particularly for the UK’s housing sector.
Being that 80% of the homes Brits will be living in by 2050 have already been built[1], it is critical that the UK’s present-day housing stock undergo sufficient retrofit works to prepare for a warmer, wetter and more volatile climate in the future. At the same time, Janani emphasised that the UK must continue to build new energy efficient homes to tackle the housing crisis. The budgetary tension between these two ambitions is widely acknowledged and is something the social housing sector and Government will continue grappling with in the coming years.
In terms of upcoming regulatory changes, Danielle discussed the UK Government’s recent consultations on UK Sustainability Reporting Standards (UK SRS), climate transition planning and sustainability assurance. Although they may not be attracting headlines, the consultations represent the Government’s ongoing work to drive forward sustainability progress and become the “sustainable finance capital of the world”[2]. If formally endorsed, the UK SRS would represent a new era of sustainability reporting in the UK, aligning with international standards set by the International Sustainability Standards (ISSB). Similarly, the introduction of a sustainability assurance oversight regime and climate transition planning requirements would represent significant steps forward toward in the UK’s journey to net zero.
SfH submitted formal responses to the UK’s consultations on UK SRS and sustainability assurance, a summary of which can be read here. The outcomes of these consultations are yet to be announced.
Later in the webinar, Chris provided his insights on the sustainable finance market. While ESG disclosures remain important for investors, Chris noted that it is increasingly common for investors to incorporate sustainability into wider business conversations with their borrowers and investees, rather than as a standalone agenda item. The level of detail demanded by funders still varies greatly from investor to investor, with some focusing primarily on traditional finance metrics and others requesting detailed information on greenhouse gas emissions and net zero transition plans from their investees.
According to Chris, however, even the funders least focused on ESG now expect to see some base level ESG information from their borrowers. As to whether sustainability linked financial transactions generate a material pricing benefit, the jury is still out – although Chris commented that “greeniums” tend to be more evident in the bank sector than in the bond markets.
So, where does ESG stand in the social housing sector as we head into 2026?
All panellists agreed that sustainability will remain a crucial area for the social housing sector in the years ahead. The way in which the sector communicates its ESG credentials, however, will continue to evolve. Luke highlighted the growing importance of crafting sustainability narratives that are authentic, honest and evidence-based, and Danielle encouraged viewers to avoid jargon wherever possible – instead focusing on real-world outcomes for residents at the community level.
Looking ahead to the expected changes in sustainability regulation in 2026, Janani advocated for an opportunistic approach, viewing incoming regulation as a catalyst for operational efficiency and innovation rather than a burden.
As a sector with sustainability at its core, social housing is uniquely positioned to drive positive change for millions of the UK’s most vulnerable people as the UK continues its journey to net zero. Housing providers continue to face significant macroeconomic challenges, not least when it comes to funding decarbonisation. However, it is critical for the sector to remain focused on the underlying principles of sustainability – making life better for social housing tenants today and future-proofing homes for the next generation.
In case you missed it, you can watch the replay of the “ESG: State of the Nation” webinar using the details below:
Replay link: ESG: State of the Nation Webinar
Passcode: 9bF2vh6?
[1] House of Commons: Retrofitting homes for net zero
[2] Gov.UK: Plans for UK to become sustainable finance capital of the world
